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Binhai Investment Co Ltd (HK:2886)
:2886

Binhai Investment Co (2886) AI Stock Analysis

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HK:2886

Binhai Investment Co

(2886)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
HK$1.00
▼(-13.79% Downside)
The overall stock score of 67 reflects a balance between stable financial performance and attractive valuation, offset by weak technical indicators. The company's profitability and cash flow generation are strong, but high leverage and declining margins pose risks. The stock's low P/E ratio and high dividend yield suggest it may be undervalued, providing a potential opportunity for income-focused investors. However, bearish technical signals indicate caution in the short term.
Positive Factors
Strategic Partnerships
The strategic partnership with Tianjin Institute enhances Binhai's technical capabilities and competitiveness in the clean energy sector, supporting long-term growth and innovation.
Favorable Financing
The favorable loan terms from Agricultural Bank of China improve Binhai's financial flexibility, supporting sustainable development and reducing financing costs.
Governance Structure
The establishment of key committees enhances operational oversight and strategic decision-making, strengthening Binhai's governance and industry position.
Negative Factors
Revenue Decline
The decline in revenue growth indicates challenges in market expansion and customer acquisition, potentially impacting long-term profitability.
Margin Pressure
Decreasing margins suggest cost pressures and pricing challenges, which could hinder Binhai's ability to sustain profitability over time.
High Leverage
High leverage increases financial risk and limits flexibility, potentially affecting Binhai's ability to invest in growth opportunities.

Binhai Investment Co (2886) vs. iShares MSCI Hong Kong ETF (EWH)

Binhai Investment Co Business Overview & Revenue Model

Company DescriptionBinhai Investment Company Limited, an investment holding company, engages in the construction of gas pipeline networks, provision of connection services, and sale of liquefied petroleum gas (LPG) and piped natural gas in Hong Kong. The company operates through Sales of Piped Natural Gas, Construction and Gas Pipeline Installation Service, Gas Passing through Service, and Sales of Bottled Natural Gas segments. It also sells piped and bottled natural gas through its pipeline networks to residential and industrial users. In addition, the company constructs gas pipelines, as well as offers construction and gas pipeline installation services to industrial and commercial customers, property developers, and property management companies. As of December 31, 2021, it had a gas pipeline network of approximately 3,574 kilometers. The company also engages in property development business. The company was founded in 1994 and is headquartered in Causeway Bay, Hong Kong.
How the Company Makes MoneyBinhai Investment Co generates revenue primarily through its investments in real estate and infrastructure projects, earning returns from rental income, property appreciation, and project completion. The company also engages in financial services, such as asset management and advisory services, which contribute to its revenue streams. Key partnerships with local governments and private sector entities enhance its project acquisition capabilities and expand its investment portfolio. Additionally, the firm may benefit from performance-based fees associated with its asset management services, providing a consistent income flow.

Binhai Investment Co Financial Statement Overview

Summary
Binhai Investment Co shows stable financial performance with consistent profitability, although there are pressures on revenue and margins. High leverage poses some risk, but the company maintains a solid equity base. Cash flow generation is strong, though slightly declining. Overall, the company is well-positioned but faces challenges in revenue growth and margin pressures.
Income Statement
Revenue growth has been inconsistent, with a decline of 3.26% in 2024 compared to 2023. Gross profit margin decreased from 11.69% to 9.18%, and net profit margin decreased from 4.01% to 3.22%. EBIT and EBITDA margins also experienced a decline. These metrics indicate some pressure on profitability, although the company remains consistently profitable.
Balance Sheet
The debt-to-equity ratio remained high at 1.50 in 2024, indicating significant leverage. Return on equity decreased slightly to 8.99%, reflecting reduced profitability. The equity ratio remained stable at 28.66%, suggesting adequate equity financing relative to assets.
Cash Flow
Free cash flow declined by 13.62% from 2023 to 2024, reflecting reduced cash generation. Operating cash flow to net income ratio improved to 2.98, indicating strong cash generation relative to profit. Free cash flow to net income ratio remained stable at 1.07, showing effective cash conversion from profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.63B6.20B6.41B6.10B4.84B3.65B
Gross Profit559.92M569.48M748.98M727.32M855.44M603.41M
EBITDA546.76M612.73M728.45M699.62M781.95M709.57M
Net Income204.67M199.78M256.61M325.83M399.66M354.90M
Balance Sheet
Total Assets8.00B7.75B8.59B8.57B8.18B7.09B
Cash, Cash Equivalents and Short-Term Investments360.77M385.00M935.40M845.25M742.18M589.77M
Total Debt3.72B3.34B3.92B3.93B3.15B2.38B
Total Liabilities5.60B5.45B6.27B6.28B5.86B5.10B
Stockholders Equity2.33B2.22B2.23B2.22B2.25B1.94B
Cash Flow
Free Cash Flow243.80M216.24M246.87M-285.59M-224.78M-97.08M
Operating Cash Flow539.66M594.99M832.38M350.25M486.15M772.30M
Investing Cash Flow-265.75M-213.40M-586.86M-802.42M-613.39M-972.35M
Financing Cash Flow-612.93M-780.61M-252.55M617.13M444.82M-113.41M

Binhai Investment Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.16
Price Trends
50DMA
1.12
Positive
100DMA
1.12
Positive
200DMA
1.08
Positive
Market Momentum
MACD
0.01
Negative
RSI
53.00
Neutral
STOCH
62.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2886, the sentiment is Positive. The current price of 1.16 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.12, and above the 200-day MA of 1.08, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2886.

Binhai Investment Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$1.58B7.688.96%6.91%-16.94%-22.17%
66
Neutral
HK$1.14B6.0615.50%5.30%3.23%2.73%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
62
Neutral
HK$312.71M8.141.42%-3.63%
59
Neutral
HK$2.96B9.344.88%4.94%7.55%-32.06%
48
Neutral
HK$773.03M8.956.00%4.42%-24.00%
45
Neutral
HK$334.75M-5.87-3.93%-11.42%65.17%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2886
Binhai Investment Co
1.14
0.14
14.00%
HK:0681
Chinese People Holdings Co. Ltd.
0.04
0.01
45.83%
HK:1265
Tianjin Jinran Public Utilities Co. Ltd. Class H
0.18
>-0.01
-0.55%
HK:9908
JiaXing Gas Group Co. Ltd. Class H
8.25
1.13
15.87%
HK:1600
Tian Lun Gas Holdings Limited
3.01
-0.31
-9.34%
HK:6828
Beijing Gas Blue Sky Holdings Ltd
0.03
<0.01
17.24%

Binhai Investment Co Corporate Events

Binhai Investment’s Tianjin Unit Signs Connected Engineering Services Deal With TEDA Jianan
Dec 31, 2025

Binhai Investment Co.’s wholly owned subsidiary BHI Tianjin has signed an engineering services framework agreement with TEDA Jianan, an associate of its controlling shareholder TEDA, under which TEDA Jianan will provide professional engineering services including supervision, cost consultancy, surveying, environmental assessment and other specialised work for BHI Tianjin Group’s construction projects in Mainland China. As TEDA Jianan is deemed a connected person under Hong Kong listing rules, the transactions are classified as continuing connected transactions subject to reporting, announcement and annual review requirements, but are exempt from the need for a circular and independent shareholders’ approval, signalling ongoing related-party cooperation within the group while remaining within lower regulatory thresholds.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Renews Connected Employee Medical Insurance Deal for 2026
Dec 31, 2025

Binhai Investment Co.’s wholly owned subsidiary BHI Tianjin has renewed its employee medical benefits by signing a 2026 Employee Medical Insurance Agreement with Heng An Standard Life, securing one year of comprehensive group medical insurance coverage for its staff in Mainland China from 1 January to 31 December 2026 for a single annual premium of RMB2.82 million. Because Heng An Standard Life is 50%-owned by a subsidiary of Tianjin TEDA, Binhai Investment’s controlling shareholder, the deal is classified as a connected transaction under Hong Kong listing rules; however, given its modest size it is only subject to reporting and announcement requirements and is exempt from the need for a circular and independent shareholders’ approval, signalling a routine related-party arrangement to maintain employee medical coverage.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Sets Out New Nomination Committee Mandate to Strengthen Board Governance
Dec 31, 2025

Binhai Investment Company Limited has formalised the terms of reference for its Nomination Committee, a board-level body responsible for overseeing the appointment and composition of directors. The committee must comprise at least three members, with a majority being independent non-executive directors and at least one member of a different gender, and is chaired by either the board chairman or an independent non-executive director. It is empowered to recommend board appointments and changes, assess director independence and time commitment, support succession planning for key leadership roles, and oversee regular evaluations of board performance. The committee is also charged with maintaining a board skills matrix, reviewing and implementing the company’s board diversity and nomination policies, and may seek external professional advice at the company’s expense, reflecting an effort to strengthen governance, diversity and regulatory compliance in the company’s board structure.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Switches Financial Reporting Currency to Renminbi
Dec 31, 2025

Binhai Investment Company Limited, whose core business and assets are based in Mainland China and largely conducted in Renminbi, currently prepares group accounts that have historically been presented in Hong Kong dollars despite using Renminbi as its functional currency. The company has announced it will change the presentation currency of its consolidated financial statements from Hong Kong dollars to Renminbi, starting with the annual results for the year ending 31 December 2025, with prior-year comparatives restated accordingly; management expects no material impact on the group’s financial statements but believes the shift will better reflect its underlying operations and provide shareholders and potential investors with a clearer and more transparent view of its financial performance.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Renews Connected Workwear Supply Deal With TEDA Unit
Dec 31, 2025

BHI Tianjin, a subsidiary of Binhai Investment Co., has renewed its workwear procurement arrangement with Tianjin TEDA Supply Chain Management Company Limited, an associate of its controlling shareholder Tianjin TEDA, for a new term running from 1 January 2026 to 31 December 2027. Under the renewed workwear framework agreement, TEDA Supply Chain will continue supplying workwear to the BHI Tianjin group on a purchase-order basis, and the transactions, when aggregated with related office supplies purchases, qualify as continuing connected transactions under Hong Kong Listing Rules, triggering reporting, announcement and annual review obligations but exempting the company from circular issuance and independent shareholders’ approval, thereby formalising an ongoing operational relationship while maintaining a relatively small scale in regulatory terms.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Joins Sinopec in Capital Boost for LNG Expansion
Dec 24, 2025

Binhai Investment Co.’s wholly owned subsidiary, Binhai Investment (Tianjin), has agreed to participate in a pro rata capital increase of Sinopec LNG alongside Sinopec Natural Gas, a wholly owned unit of Sinopec Corp., maintaining its 2% stake while Sinopec Natural Gas retains 98%. The move will raise Sinopec LNG’s registered capital from RMB4.87 billion to RMB5.09 billion, with Binhai Investment (Tianjin) contributing RMB4.4 million from its own funds and Sinopec Natural Gas contributing RMB215.6 million, to support construction projects aimed at expanding Sinopec LNG’s operations; the deal is classified as a connected transaction under Hong Kong listing rules, triggering reporting and announcement requirements but exempting the company from shareholder approval, underscoring Binhai Investment’s continued strategic alignment with key LNG infrastructure growth without materially altering its ownership position.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Secures RMB1 Billion Strategic Credit Facility From Agricultural Bank of China Tianjin Branch
Dec 22, 2025

Binhai Investment Company Limited’s wholly owned subsidiary, Binhai Investment (Tianjin) Co., Ltd., has signed a strategic cooperation agreement with the Agricultural Bank of China’s Tianjin Xiqing Sub-branch to establish a comprehensive financial partnership aimed at supporting industrial development and urban optimization in Tianjin. Under the agreement, the bank will provide an indicative credit facility of RMB1 billion over five years, alongside preferential interest rates and fees, and will cooperate across areas such as cash management, payroll, payment services, personal finance and services for downstream customers, which the board expects will optimize the group’s financing structure, reduce financing costs, enhance fund utilization efficiency and further consolidate its market position and competitiveness in regional economic development.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Details 151 Connected Service Deals With TEDA Jianan
Dec 19, 2025

Binhai Investment Co has issued a supplemental announcement detailing 151 connected transactions conducted over the 12 months prior to 28 November 2025 with related party TEDA Jianan, which were aggregated with a magnetic gradient detection service agreement for compliance with Hong Kong Listing Rules. The company disclosed that TEDA Jianan provided engineering supervision and cost consultancy services on the group’s construction projects, with engineering supervision fees totaling about RMB316,682 and cost consultancy fees about RMB283,093, each priced in accordance with PRC and Tianjin regulatory fee standards, underscoring the recurring and regulated nature of these related-party service arrangements and their relevance to the company’s connected transaction classification.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Co Announces Connected Transaction for Engineering Services
Nov 28, 2025

Binhai Investment Co has announced that its wholly-owned subsidiary, TEDA Clean Energy, has entered into a Magnetic Gradient Detection Service Agreement with TEDA Jianan, an indirect non-wholly owned subsidiary of TEDA. This agreement involves TEDA Jianan providing engineering surveying services to locate gas pipelines for the Huaihe East Road Project. The transaction is classified as a connected transaction under Hong Kong’s Listing Rules due to TEDA’s significant shareholding in Binhai Investment Co. The agreement is subject to reporting and announcement requirements but is exempt from shareholder approval.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Co Partners with Zhejiang Taineng for Integrated Energy Projects
Nov 25, 2025

Binhai Investment Co has entered into a strategic cooperation agreement with Zhejiang Taineng Smart Power Co to collaborate on integrated energy projects across China. This partnership aims to leverage both companies’ strengths in zero-carbon park development, smart micro-grids, and energy storage, enhancing their market influence and technical capabilities. The collaboration will also explore equity cooperation and resource sharing, potentially increasing their market share and brand impact.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Secures Major Gas Supply Project with Zhaoyuan Thermal Power Plant
Nov 3, 2025

Binhai Investment Company Limited announced that its subsidiary, Zhaoyuan Binhai Gas Company Limited, has secured a significant gas supply agreement with Zhaoyuan Thermal Power Plant for the 2025-2026 heating season, planning to supply approximately 37 million cubic meters of natural gas. This project not only strengthens the company’s strategic relationship with the local government and enhances its corporate image but also ensures sustained growth in pipeline natural gas sales and profits, marking a pivotal step in the regional business development of the Group.

The most recent analyst rating on (HK:2886) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 09, 2025